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Chairman
Roger Gilbert
Managing Director
Paul Thompson
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December 2001
Radio Nova 100 revolutionises Australian radio
After its extremely successful launch,
Nova 100 in Melbourne, clinched the number one rating after only
15 weeks on air an unprecedented feat. |
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DMG Radio Australia recorded
a small and reduced loss. The recently launched Nova station in
Melbourne and 5AA in Adelaide performed particularly well and the
regional stations experienced some recovery in difficult trading
conditions.
DMG Radio is the largest radio network in Australia and continues
to grow, with 61 radio stations currently operating across five
states and two more planned for launch in the coming year. In September,
it became wholly owned again when the Group acquired the 25% interest
of GWR Group plc.
Following on from last year's highly successful launch of our Sydney
FM station Nova 969, the Group launched Nova 100, its Melbourne
FM station in December 2001. Nova 100's immediate success was unprecedented
in Australian broadcasting, with it achieving the Number One rating
in its second Neilsen Media Research official survey after only
15 weeks on air. Nova 100 continues to outperform all expectations
and, along with Nova 969, breaks traditional radio rules to ensure
listeners and advertisers alike encounter cutting edge radio.
DMG Radio, in a 50% joint venture with Australian Radio Network,
was successful in its bid to win the new FM licence in Perth in
February 2002. The station, Nova 937 is to be managed by DMG Radio
and is preparing to revitalise the Perth radio market in a December
2002 launch. DMG and ARN also jointly own Brisbane's newest FM station,
97.3FM, which has exceeded its first year projections since launching
in October 2001.
DMG Radio's first purchase in Australia back in 1996, Adelaide's
5AA, has capped a remarkable year by consistently improving its
programming and profit performance and has been the highest rating
commercial talk station in Australia in every official Neilsen Media
Research survey released this year. 
Despite a slower than expected turnaround in economic conditions
in regional Australia, accentuated now by worsening drought conditions,
our regional stations were able to increase both revenues and profits,
while also strengthening our portfolio of stations.
DMG Radio was successful in its bid to win the new FM licence on
the New South Wales Central Coast, and in October 2002 announced
a joint venture with RG Capital extending its penetration into this
high growth region. Earnings from our associate GWR Group, in which
DMGT has a 29.97% interest, continue to be affected by the advertising
downturn. Revenues are flat on last year's figures, in a market
showing poor forward visibility. GWRhas embarked on a vigorous programme
of restructuring and is concentrating on its UK business. Substantial
reductions in costs and debt have been achieved.
Audiences remain strong, with Classic FM reporting record results
in six successive quarters to take the total weekly audience to
6.7 million. GWR's local stations are maintaining their audience
in an increasingly competitive market, and the Group's digital radio
interests are progressing as the cost of digital radio receivers
falls. GWR operates three national stations on digital radio, and
is second only to the BBC.
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